Applied Workshop Projects through University-Industry Collaboration, Vol (1) ĐZM ĐR EKONOM Đ ÜN ĐVERS ĐTES Đ APPLIED WORKSHOP PROJECTS through University-Industry Collaboration VOLUME 1 2008-2009 Editors: Burcu Adıvar Muhittin Hakan Demir Tunçdan Baltacıo ğlu Đzmir University of Economics Department of Logistics Management 1 Applied Workshop Projects through University-Industry Collaboration, Vol (1) COPYRIGHT 2009 All rights reserved No part of this book may be used, reproduced, reprinted, stored in a retrieval system or transcribed in any form or by any means – electronic, mechanical, photocopying, recording, or otherwise – without the prior permission of Izmir University of Economics / Logistics Management Department. 2 Applied Workshop Projects through University-Industry Collaboration, Vol (1) ACADEMIC SUPPORT Prof. Dr. Tunçdan Baltacıo ğlu Asst. Prof. Dr. Muhittin Hakan Demir Asst. Prof. Dr. Burcu Adıvar Asst. Prof. Dr. Öznur Yurt Lecturer Bengü Sevil Research Assistant I şık Özge Yumurtacı Research Assistant Esen Andiç Research Assistant Sevda Dede Research Assistant Aysu Göçer Research Assistant Ebru Selin Selen INDUSTRIAL SUPPORT Narlıdere Municipality Balçova Municipality Schenker Arkas Nakliyat Ve Ticaret A. Ş Pınar Su San. Ve Tic. A. Ş Çamlı Yem Besicilik Sanayi ve Ticaret A. Ş Đzmir Ticaret Odası 3 Applied Workshop Projects through University-Industry Collaboration, Vol (1) PREFACE This book consists of project reports of the senior Logistics Management students of Izmir University of Economics have prepared in the scope of Applied Workshop in Logistics I and II. The project course program provides the basic skills to senior students to effectively plan, manage and control large scale real world projects especially from industry. The purpose of the program is to have senior students gain real life experiences in the logistics and supply chain management from planning, operations, marketing, warehousing, transportation and production. Accordingly, students find an opportunity to obtain first hand experience in problem definition, solving, modeling, simulation, and cost analysis. Moreover, a special emphasis is given on communication skills by requiring the students to submit periodic reports and oral presentations. The main aim is to strengthen the ties between students, academics, and industry. The benefits are tremendous not only to the students or the department, but also to the industrial partners. The program has many benefits to the industrial partners by providing access to faculty expertise and laboratory capabilities within the IUE Department of Logistics Management or by providing student team service with a consultancy capacity enabling the industrial partner to address practical challenges, which may be outside the scope or capacity of those normally handled by in-house personnel. Besides, students benefit from this program by having the opportunity to work on a real business problem of direct interest to a company or institution, and thus is motivated by the potential for seeing a tangible impact of his/her consulting efforts on real problems. By interacting with company personnel and learning to work under actual industrial/government conditions, students gain valuable interpersonal skills and technical experience while enhancing personal skills, such as effective time management, developing project management skills, achieving milestones of the project, and making decisions. Furthermore, working with real-life business solutions design and development projects or working with modern information technologies, such as database design, modeling, web design, simulation and visualization tools are also important contribution to the education of students. The department also benefits from this program by improving the university-industry collaboration and by being aware of challenges faced by the companies. Besides, this helps the department in assessing the curriculum upon the feedbacks received. The scope of the project involves 4 to 6 students spending around 650 hours of work including the combinations of several logistics management knowledge areas. 4 Applied Workshop Projects through University-Industry Collaboration, Vol (1) The projects are continuously evaluated by the academic advisors and coordinators; updates are provided through fixed milestones such as a proposal, monthly progress reports, two presentations (at the end of each term) and a final report. The common outcomes of the projects are cost reduction, safety improvement, worker satisfaction, efficiency improvement, productivity improvement, increased capacity, improved decision making and for some projects cost/benefit analysis as well. As a conclusion, with the collaboration and cooperation of the university and industry partners, valuable as well as beneficial studies are carried out by the project groups, improving all parties to an important extent. This book would not have been published without the support of research assistant Aysu Göçer. First and foremost, we would like to thank her and all of the editors for their valuable efforts. Besides, we would like to express our gratitude to everyone and in particular to the industry partners and university for providing such an opportunity to us. Tunçdan Baltacıo ğlu Burcu Adıvar Muhittin H. Demir 5 Applied Workshop Projects through University-Industry Collaboration, Vol (1) BRIEF CONTENTS NARLIDERE MUNICIPALITY WASTE MANAGEMENT PROCESS………07-26 WASTE MANAGEMENT OF BALÇOVA MUNICIPALITY…………………27-52 LOADING OPTIMIZATION PROJECT FOR SCHENKER ARKAS………….53-68 SIMULATION PROJECT FOR PINAR SU PRODUCTION PROCESS………69-86 DESIGN OF DECISION SUPPORT SYSTEMS WITH RFID APPLICATION FOR PINAR SU………………………………………………..87-106 CUSTOMER RELATIONSHIP MANAGEMENT AND MARKETING ANALYSIS AT SCHENKER ARKAS…………………………………..………107-116 PINAR SU DISTRIBUTION OPTIMIZATION…………………………………117-139 DEMAND MANAGEMENT FOR DRINKING WATER……………………….140-159 FEASIBILITY STUDY OF IZMIR LOGISTICS VILLAGE……………………160-184 ÇAMLI YEM BES ĐCĐLĐK FEED PRODUCTION OPERATIONAL PLANNING………………………………………………………………………185-199 WAREHOUSE DESIGN…………………………………………………………200-215 6 Applied Workshop Projects through University-Industry Collaboration, Vol (1) NARLIDERE MUNICIPALITY WASTE MANAGEMENT PROCESS Serdar Sava şan, Sinan Çavdırlı, Anıl Keklik, Billur Çevikel, Beliz Gülden Asst. Prof. Dr. Muhittin H. Demir EXECUTIVE SUMMARY This project focuses on redesigning the routes of dustcarts used by Narlıdere Municipality for waste collection. The aimed achievement was a reduction of fuel consumption and overtime costs, making used of the theoretical background and optimization techniques. The project was carried out with the idea of working for benefit of our country and citizens. Waste collection process in Narlıdere Municipality currently relies on the experience and intuition of the managers. Dustcart - Region allocation is made by the responsible manager, the exact route routes are determined by the drivers. The allocatin and routing problem for the Waste collection process in Narlıdere Municipality was initially formulated as a VRP (vehicle routing problem). However after further observations and site visits, the problem was identified as a modified version of VRP, with constrained routes. Two types of heuristics were applied using the modified formulation: a nearest neighborhood type of heuristic, and a special intuitive heuristic. Furthermore, a modification of a TSP code from the GAMS library was used to solve the same formulation. Over a sample region, the routes obtained by the GAMS solution were 10% and 12% more efficient than the two heuristics respectively. The underlying model was further changed by adding and modifying a set of constraints to increase the validity of the model. As a result, routes for dustcarts have been obtained. In addition to the dustcart – region allocation and route planning, the suggested waste collection frequencies for each region is reported. 7 Applied Workshop Projects through University-Industry Collaboration, Vol (1) 1. INTRODUCTION 1.1 General Overview Municipal waste is formed by household, commercial activities like small businesses, office buildings and institutions such as schools, hospitals and government buildings. It does not include other wastes arising from mining, industrial or construction and demolition processes. It is made up of materials such as paper, cardboard, metals, textiles, organics (food and garden waste). Waste management is defined as the collection, transportation, processing, recycling and disposal of waste materials with the purpose of reducing the negative impacts that waste has on environment and society. Waste collection and transportation are the two components of the waste management system and we have focused on these components within the scope of this project. 1.2 Motivation This was a very interesting project for us, because lack of efficiency and productivity has always been outlined as being one of the main problems of the public sector. The ideas of evaluating the performance of municipality operations and trying to improve them have attracted our attention. Waste collection was one of the most complicated processes for the municipalities. Any improvement on the process would have been of use to the whole public and to the country. Besides, this project could have been applicable in many other municipalities as well. 1.3 Goals The goal was to reduce the fuel consumption and overtime costs by redesigning the routes of dustcarts with the support of the academic knowledge and